Special Loan Programs

Are you hesitant because they think your monthly payments will be too high?

Would you like to buy a home but lack down payment funds?

Here are some of the special home loans programs now available:

Minnesota Cost Assistance Programs

MN Housing Finance Agency CASA Up to $3000 entry cost assistance at 0%, no payments, plus $75/mo payment supplement for 1^st year. Must be 1^st time homebuyer.

MHFA Home Help Up to $14,999 entry cost assistance at 0%, no payments. $10,500 is FORGIVEN after 5 years. Maximum household eligibility income is 80% of median income based on family size.
Plymouth HRA 1^st Time Homebuyer Program Up to $25,000 at 0%, no payments on this 2^nd mortgage, must buy in the City of Plymouth, maximum household eligibility income is 80% of median income based on family size.

Interfaith Outreach and Community Partners Up to $3000 for entry cost assistance to lower income families in Plymouth, Wayzata, Minnetonka.

Minneapolis Minnesota Cost Assistance Programs

CityLiving Bond Program Up to 4% of the mortgage amount in down payment assistance GRANT or a below market interest rate. Must buy in the city limits of Minneapolis or St Paul. Maximum household income $80,900 but up to $88,990 for targeted areas. Max purchase price $266,970 for single family home. In targeted area, max purchase price is $355,960. Must be 1^st time homebuyer.

Minneapolis Advantage Up to $10,000 entry cost assistance at 0%, no payments, forgiven after 5years. Must buy in targeted neighborhoods in Minneapolis. NO income limits. NOT required to be 1^st time homebuyer.

Minnesota – County Down Payment Assistance Programs

Anoka County Down Payment Assistance Program Up to $5,000 at 0%, no payments on this 2^nd mortgage, must buy in Anoka County, maximum household eligibility income is 80% of median income based on family size.
Dakota, Washington and Scott County Bond Program Up to 4% of the mortgage amount in a down payment assistance GRANT or a below market interest rate. Must buy in Dakota, Washington or Scott County. Maximum household income for family of 1 or 2= $77,600; for 3+= $85,360. Maximum purchase price $256,080 for single family home. Must be 1^st time homebuyer.

Washington County HRA Assistance Loan No payments and 0% interest on this 2^nd mortgage, must buy in Washington County. Up to $10,000 if household eligibility income is 80% of median income based on family size. Up to $20,000 if household eligibility income is 50% of median income based on family size.

Dakota County CDA Assistance Loan No payments and 0% interest on this 2^nd mortgage, must buy in Dakota County. Up to $5,000 if household eligibility income is 80% of median income based on family size. Up to $10,000 if household eligibility income is 50% of median income based on family size.

All of these programs are subject to availability of current funding.
Several can be combined for maximum benefits for You.
The programs have a wide variety of income, asset and sale price restrictions.
Some have subsidy recapture clauses, and some are forgiven after a period of time.
If you are going to use any of these great programs, it is imperative that you work with a mortgage loan officer that has extensive experience with this type of lending.

Minnesota Housing website http://www.mnhousing.gov/
An FHA loan allows for the refinance or purchase of a home with a low down payment. These loans are great for the first time home buyer. http://www.fha.com/

Other Affordable Housing Options

Entry Cost Assistance for specific properties through
HRAs (Housing Redevelopment Authority)

CDAs (Community Development Agencies)

Or CHDOs (Community Housing Development Organizations)

Ø Funding to reduce the mortgage amount needed for purchase of a home that has been built or rehabilitated by the agency offering the home for sale.

Ø Also used to provide some affordable condo or townhome units in a particular new development.

Ø Usually significant amounts ($20-30,000) of gap assistance secured by a soft 2^nd.

Ø Some soft 2nds are forgiven after a period of time.

Community Land Trusts

A community land trust (CLT) is a nonprofit organization that owns land in order make housing available to residents who could not otherwise afford it. In Minnesota, there are currently 9 active community land trusts that provide affordable homeownership to households in their area. Community land trusts help communities to promote resident ownership and control of housing, keep housing affordable for future residents, capture the value of public investment for long-term community benefit